99% of People Will Lose Crypto in Self Custody

[vapourminer]

And only a fool could lose the private key in their wallet containing their own funds

lol  *raises hand*

its easier than you think

[1714103635]

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[1714103635]

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[Falconer]

CZ has some point in stating it and is somewhat real for some people who are new to the crypto world and have no knowledge about holding and keeping their crypto. But what I see in his statement is he wanted us to keep our crypto in their platform and feel that we are secured, that is a kind of trick.

CZ might have said the right thing regardless of what was hidden in it. I think someone is still at risk of losing their assets even if they have full custody, and in most cases lose it starts with the user himself.

But I stick to this " not your keys, not your coins". We are entitled to keep our coins in our controlled wallet/s, not just in these centralized exchanges. I understand the risk but I see a huge risk in using their wallet as storage. We are not sure if they will give back our money if they get scammed, or if the worse is to freeze our account.

Of course, your decision must be right. Having custody of our own assets by keeping them in a non-custodial wallet will be our own responsibility to secure them. There are still risks, but there is always a way to take the right safety precautions.

[crunck]

I also somewhat agree with what he said, the newbies will be the ones who are very likely to lose their assets when stored on non-custodial wallets because they do not know how to secure them and lack knowledge about it. But I would choose to keep it in my personal wallet rather than hand it over to CZ or any third party. I trust no one but myself.

[tygeade]

While he has a slight point, I'm really not a fan of the 99% number, knowing how frequently attacked centralized exchanges are.

I think the only case where I'll justify leaving funds on a centralized exchange, is when the holder is a totally technologically-illiterate senior citizen.

so im not shocked that the number is above 50% of people that cant self-custody effectively. but i think 99% refers to the number of people that may lose 'some*' value of their hoard. where as the ability to self custody is more like 30% as oppose to 1%

*some value: nearly everyone has lost a few fiat pennies down into the void of their sofa cushion or the pavements of their town
..
it requires education to learn how to secure crypto properly. and from reading the thousands of users posts on this forum(supposed technically aware) of people. i always bang my head at the multitude of people that just cannot even be bothered to learn and research, and just want answers spoon fed to them or just go with whatever lame thing their friends have told them

I agree that 50% is guaranteed, between people who just lose it, to people who got scammed, and to people who put it on scam places, there are too many people who are willingly giving their money to a thing that steals it. I do not mean like it has to be centralized exchange, they literally invest into scam projects that claim grand stuff and then just steal the money, that is a loss too if you ask me and on the investor.

I know it's not easy but at the end of the day the only great way to make money is to just put it on bitcoin and hold it for a decade, while sounds easy it is somehow hard for some people to follow up and do that unfortunately.

[salad daging]

I wonder if CZ's statement was just to scare investors who moved their assets to non-custodial wallets or if it really happened to most investors. However, investors who intend to move their assets to non-custodial wallets should learn how to protect their wallets from being targeted by hackers.

And if, after this, many people lose their assets because their wallets were hacked, it means that what CZ said is right and makes those investors huge losses.

I don't think like that maybe CZ is speaking as it is because some investors really don't know how to store assets in non-custodial and with private keys, the most important thing is where to store private keys is something to pay attention to and don't let us forget or even gone.

As others have said as long as the non-custodial wallet is not connected to unknown sites as long as we don't do that it will still be safe no one can hack it.
This is partly due to being affected by FUD so many are withdrawing their money from the exchange to non-custodial even if investors can use it.

[BigBos]

‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao

I think, what CZ is doing is countering to the "not your key not your coin" slogan circulating among small and big investors, because it will indeed be detrimental to centralized exchange Binance, from a business point of view the less people use the exchange, the less profit that will be obtained from transaction fees on the platform, of course a businessman will not allow that.
The argument he presented was deliberately made to scare investors regarding security in their own hands so that investors would think twice about leaving the platform.
But from another point of view, I think what he's doing will be in vain, because I think what was conveyed in the space he created reminds investors to back up personal wallet passwords properly and securely.

[Tanvi50_]

I can not agree with CZ completely. I have no problem keeping my funds in any centralized exchanges only if they can guarantee the safety of my funds. Which they are not capable of doing.
Rather I will keep my funds in my private wallet. And people are most concerned about money nowadays. So I don't think they will lose the only thing which is most important to them.
Not if they have only one backup. I keep multiple backups for situations like this.

[Welsh]

I can not agree with CZ completely. I have no problem keeping my funds in any centralized exchanges only if they can guarantee the safety of my funds. Which they are not capable of doing.
Rather I will keep my funds in my private wallet. And people are most concerned about money nowadays. So I don't think they will lose the only thing which is most important to them.
Not if they have only one backup. I keep multiple backups for situations like this.

Well, you probably do have a problem with centralised exchanges then. Since, they can never guarantee the safety of your coins, and I imagine in their legal terms they go into this in some depth.

Plus, you'd be surprised how many people lose important things, whether it's from neglect or making their passphrases too difficult. It's a slippery slope, and the majority of people have awful security practices.

[ginsan]

I think, what CZ is doing is countering to the "not your key not your coin" slogan circulating among small and big investors, because it will indeed be detrimental to centralized exchange Binance, from a business point of view the less people use the exchange, the less profit that will be obtained from transaction fees on the platform, of course a businessman will not allow that.
The argument he presented was deliberately made to scare investors regarding security in their own hands so that investors would think twice about leaving the platform.
But from another point of view, I think what he's doing will be in vain, because I think what was conveyed in the space he created reminds investors to back up personal wallet passwords properly and securely.

cz shouldn't talk much on social media because if he unknowingly says ridiculous things it will have a big impact on his company because the current situation is the bankruptcy of exchanges which is hype on social media twitter and if cz can't control his words then binance customers will  exit significantly from that exchange.

binance has had a pretty strong fud up to this point, therefore he has to be keen to see opportunities to be able to turn things around from negative to positive. if he does something and not everything has to be published on social media.
the market situation continues to experience quite spicy frying at the end of this year.

[_BlackStar]

cz shouldn't talk much on social media because if he unknowingly says ridiculous things it will have a big impact on his company because the current situation is the bankruptcy of exchanges which is hype on social media twitter and if cz can't control his words then binance customers will  exit significantly from that exchange.

Stop that bullshit, you can trust him but you can't be 100% sure your assets will be safe on the exchange. After all what would stop him from saying whatever he pleased, that was his right.

I use binance only for deposits, not for storage. I trust them to some extent, not all of them because I care about the risks. Whatever he says may not be entirely true, but a few things can be considered as a guide.

[Finestream]

While he has a slight point, I'm really not a fan of the 99% number, knowing how frequently attacked centralized exchanges are.

I think the only case where I'll justify leaving funds on a centralized exchange, is when the holder is a totally technologically-illiterate senior citizen. On the other hand, if the holder is capable of using a smartphone, chances are — he/she is capable of using a Ledger hardware wallet.

But yea, you shouldn't lose your funds in self-custody if you aren't utterly careless.

That’s the reality when it comes to those irresponsible owners, chances are they lose more because they can’t safeguard their hodlings. However, if some have been careless, others have been very careful too and cautious of their investments that is why they always prefer a non-custodial wallet as they can take full responsibility on safeguarding their coins in their wallet.

[kryptqnick]

I've never had a problem using a non-custodial wallet and actually feel more anxious using a centralized platform like an exchange because they have way more features than a wallet, as well as can have requirements like KYC, hidden fees, etc.. And I really don't think I'm unique enough to belong in the 1% who can figure things out and not lose access to my money. I have more faith in humanity. Is it just Binance CEO's opinion or is there any research to support the idea that, statistically, the chance of losing access to one's coins is this high and over which period of time?

[Viscore]

I won't say I disagree with his point because he makes an important point in this case. What is the point of storing your funds in a self-custody wallet when the coin is vulnerable to attack and lost by the owner? People have lost their savings in their personal wallet due to illiteracy and lack of sufficient knowledge about self-custodian wallets. A campaign for it is necessary which in my opinion will reduce the effect of it happening. Also, me seeing this as a favorable speech for people to save their money in his Binance exchange wallet.

There’s no use actually having a self-custody wallet when the owner itself is illiterate and still has no knowledge how to safeguard his own coins. And if he’s not ready to entrust his coins to a centralized exchange, it’s better to keep him gain knowledge and develop learnings  so he can be aware on how to make his coins not accessible for hackers. Although for some reasons like senior citizens hodlers, better to adopt a custodial wallet and entrust them with his hodlings.

[Sanitough]

Recently, when people are withdrawing their money to personalized wallets, CZ says that  out of these people 99% of them will lose money, as only 1% of the people are capable of handling the non-custodial wallets.

‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao

He may be right because most people do not understand the risk, if they are not careful they could lose all their crypto.  Some may lose their private keys and others may connect their wallet at scam sites and they will be deprived of their funds.

Education and understanding of non-custodial wallets is necessary.  A lot of people have move funds out of binance recently, lets see if they know how to safeguard their bitcoin/ altcoins in these wallets.

CZ might have limit his opinion on those uneducated and illiterate people who are currently hodling their own coins, and expect that in the months or years to come, all those coins will be lose or easily gone. And it’s really true knowing they are incapable to manage the security of their own wallet. But for those who are well knowledge and are very careful with their own investments, non-custodial wallets are the best wallets to go.

[Franctoshi]

Even though up to the estimated 99% of people which likely will lose their cryptos in self custody, So is he trying to let us know that storing in a centralized exchange is more safer ?,
Since we can't trust Cex anymore.

In other hands there's still 99% chance too that people will lose their money storing cryptos in Centralized exchange.
 Therefore is better for me to bear responsibility of whatsoever that may happens to my funds in self custody, than to lose it in Cex.  
Centralized exchange is still not a safe heaven.

[Distinctin]

Recently, when people are withdrawing their money to personalized wallets, CZ says that  out of these people 99% of them will lose money, as only 1% of the people are capable of handling the non-custodial wallets.

‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao

He may be right because most people do not understand the risk, if they are not careful they could lose all their crypto.  Some may lose their private keys and others may connect their wallet at scam sites and they will be deprived of their funds.

Education and understanding of non-custodial wallets is necessary.  A lot of people have move funds out of binance recently, lets see if they know how to safeguard their bitcoin/ altcoins in these wallets.

I can't blame CZ because some people are really incapable in the sense that they are not 100% responsible in managing their own investments. That is why if its the case, we should just rely from the security offered by centralized exchanges and hoping that our coins will not be gone eventually. While this is true for others, but I believe some also have certainly build the knowledge and skills that are basically needed to run successfully a self-custody wallet. As long as people are literate enough, i guess everyone deserves to learn on securing their own non-custodial wallet.

[Quidat]

Recently, when people are withdrawing their money to personalized wallets, CZ says that  out of these people 99% of them will lose money, as only 1% of the people are capable of handling the non-custodial wallets.

‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao

He may be right because most people do not understand the risk, if they are not careful they could lose all their crypto.  Some may lose their private keys and others may connect their wallet at scam sites and they will be deprived of their funds.

Education and understanding of non-custodial wallets is necessary.  A lot of people have move funds out of binance recently, lets see if they know how to safeguard their bitcoin/ altcoins in these wallets.

CZ might have limit his opinion on those uneducated and illiterate people who are currently hodling their own coins, and expect that in the months or years to come, all those coins will be lose or easily gone. And it’s really true knowing they are incapable to manage the security of their own wallet. But for those who are well knowledge and are very careful with their own investments, non-custodial wallets are the best wallets to go.

Really that impossible or unlikely for those people who had stored up their coins on a non custodial wallet on ending up on losing their keys excluding some circumstances like head injury or
accidents involved mental condition or something like that which would really be causing up that kind of scenario which is really that something needs to be avoided at all cost.
we've been always suggesting about using non-custodial ones which it is really that preferable.It is really just CZ trying out to say things which are possibly could happen
but to mind off that those words are hiding off some intent that tells us that we should at least consider on storing on exchange platforms. 

[Ultegra134]

And only a fool could lose the private key in their wallet containing their own funds

lol  *raises hand*

its easier than you think

Also raises his hand

Unfortunately, it's not hard to lose one. You may think that you're keeping perfect track of where you're keeping your private keys or seed phrases, only to realize that you may have actually deleted your backups or thrown them away. I've lost access to wallets when I was younger because I was dumb enough to save the private keys on txt files, many of which were lost during Windows reinstallations or corrupted hard drives. While it belongs in the past and I've actually managed to recover some of these wallets, I still suspect that I may have another out there, lost forever.

It's sometimes easy to let go and not sophisticate the whole idea of backups until it happens to you. About a year ago, my laptop started acting up for no apparent reason; it wasn't detecting the HDD after a long trip. I thought that the HDD got damaged in transit and gave me a huge scare, but it ended up booting after several tries. I didn't have a backup.

[BitcoinPanther]

   - Holding bitcoin or any cryptocurrency in any of the non-custodial wallets is not a bad thing especially if we know it is safe. Whatever Cz said, he has a point, it seems that what he wants to convey to long-term investors is that no matter how much time is spent waiting, there is no certainty as to when it will happen.

Yeah he has a point of doing and releasing that statement.  Not that he is accurate of what he stated but being an owner of centralized exchange, he will lost lots ang possibly goes bankrupt if all Binance users pull out their fund.  So he has a point to convince people so that he can save his business but I disagree that 99% of users are idiots.

I also noticed that what he wanted to convey in that article is that it is still good to put the community's crypto assets in the custodial wallet, but the only ones who will benefit greatly from what he says are the centralized-based platforms, that is the truth.

Well it is his business so anything he stated has ulterior motive and of course he wanted people to redeposit in his exchange so that his business will continue.

[michellee]

I wonder if CZ's statement was just to scare investors who moved their assets to non-custodial wallets or if it really happened to most investors. However, investors who intend to move their assets to non-custodial wallets should learn how to protect their wallets from being targeted by hackers.

And if, after this, many people lose their assets because their wallets were hacked, it means that what CZ said is right and makes those investors huge losses.

I don't think like that maybe CZ is speaking as it is because some investors really don't know how to store assets in non-custodial and with private keys, the most important thing is where to store private keys is something to pay attention to and don't let us forget or even gone.

As others have said as long as the non-custodial wallet is not connected to unknown sites as long as we don't do that it will still be safe no one can hack it.
This is partly due to being affected by FUD so many are withdrawing their money from the exchange to non-custodial even if investors can use it.

It's also possible that CZ is speaking frankly given that nowadays there are lots of investors trading and keeping their coins in multiple wallets, including keeping them on exchanges. It is these people who will be targeted by hackers if they cannot know the basic steps to secure their wallets from being hacked.

When we want to store those coins in a non-custodial wallet, it means we have to be responsible with security and take good care of them.